020609 Farmland Makes Reorganization Moves

Kansas City, MO - Farmland Industries announces two developments in its reorganization process. The company has promoted three individuals as it reorganizes its management team and is closing 16 convenience stores in northeast Arkansas.

To reflect its focus on reorganization, Farmland has promoted three individuals to its senior management team.

Bob Schuller, 41, has been named vice president, general counsel and corporate secretary. In this role, Schuller will be responsible for the Legal Division, Environmental Affairs, Corporate Communications, and Corporate Human Resources. Schuller replaces Bob Terry, who was named president and CEO last month. He has been with Farmland since 1994, most recently as associate general counsel.

Dennis Alt, 46, has been appointed vice president, Strategic Projects. His primary accountability will be to lead the company's reorganization activities. Alt re-joined Farmland's Legal division in 2000, most recently serving as associate general counsel. Prior to that he was a shareholder with Stinson Mag & Fizzell (now Stinson Morrison Hecker). From 1993 to 1997, Alt served as general counsel to the Cooperative Finance Association. He was an attorney in Farmland's Legal division from 1990-1993.

Tim Daugherty, 49, has been named vice president, Administration. In this role, Daugherty will oversee Corporate Administration, Government Relations, Information Technology, Region Operations, and Strategic Sourcing. Daugherty joined the company in 1985 and most recently served as regional vice president. Prior to that, he served as President of Farmland's North American Grain division.

In a move to exit unprofitable, non-core business areas, Farmland is closing 16 NEA (Northeast Arkansas Oil) convenience stores in the Jonesboro, Searcy and Newport, Ark., areas this week. NEA is a subsidiary of Farmland Industries, and was acquired as part of the company's purchase of SF Services in 1998.

The leased facilities employed 120 part-time employees and 60 full-time employees. Inventory is being disposed of and perishable foods are being offered to area charities.

About Farmland Industries:

Farmland Industries, Inc., Kansas City, Mo., is a diversified farmer-owned cooperative focused on meeting the needs of its local cooperative- and farmer-owners. Farmland and its joint venture partners supply local cooperatives with agricultural inputs, such as crop nutrients, crop protection products, and animal feeds. As part of its farm-to-table mission, Farmland adds value to its farmer-owners' grain and livestock by processing and marketing high-quality grain, pork, beef and catfish products throughout the United States and in more than 30 countries.

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